Luscious Layers Bakery recorded various transactions in February 2016 related to starting their business, including obtaining capital from owners, taking out a loan, purchasing equipment and supplies, and making their first sales. At the end of the month, adjusting entries were made for depreciation, accrued expenses, and inventory. The trial balance was prepared, showing assets of $108,820.16 and liabilities/equity of $111,721.94, resulting in a net loss of $2,901.78 for the month.